Hyundai Motor Group announced Tuesday that its automobile financing subsidiary has successfully made inroads into the Chinese market through a joint venture.
“Hyundai Capital Services launched Hyundai Capital China, a joint venture firm in collaboration with Beijing Automotive Industry Group Investment,” the automotive group said in a statement.
It said the joint entity, headquartered in Beijing, will provide Chinese consumers with auto financing for Hyundai and Kia vehicles.
The group’s initial investment amounts to 500 million yuan (90 billion won). Hyundai Motor Group holds a 60 percent stake in the venture (Hyundai Capital with 46 percent and Hyundai Motor with 14 percent) while Beijing Automotive Industry Group ― also called BAIC Group ― has the remaining 40 percent stake.
“Hyundai Capital China will offer top quality services to the dealer network and provide new and attractive financial packages for Hyundai and Kia customers,” the group said.
It also said that Hyundai Capital China plans to combine BAIC Group’s excellent network with strong risk management and financing expertise from Seoul-based Hyundai Capital.
By providing stable financial packages to consumers and dealers, Hyundai Motor Group, which marked No. 3 in the Chinese market with 8.9 percent market share, is well positioned to grow its sales there, it said.
“We are confident about our growth perspectives since only 10 percent of car purchases are financed by loans in China, a ratio that the industry estimates will triple by 2017,” Hyundai Capital CEO Ted Chung said.
“Having a captive finance company will benefit Hyundai Motor Group in its future efforts to gain market share in world’s largest car market,” he said.
BAIC Group chairman Xu Heyi said, “Our extensive network and in-depth knowledge in the Chinese market will be a great asset to Hyundai Capital China to provide a strong support for Hyundai Motor Group’s continuing growth in China.”
He added that such efforts are in line with the mission to invest and provide loans for Beijing Hyundai Auto’s growth.
Hyundai Capital Services is Korea’s No. 1 provider of consumer financial products, including auto financing, auto leasing services, personal loans and home mortgages.
Established in 1993, Hyundai Capital is Korea’s leading auto financing provider which dominates the market. It is also No. 1 in the auto lease and used-car market.
It has been expanding its support for Hyundai Motor’s international growth, ranging from the U.S, U.K., Germany, Russia, Brazil, Australia and India.
Beijing Automotive Industry Group, founded by the Beijing government, is a leading motor group in China. Beijing Hyundai, a joint venture with Hyundai Motor, is one of BAIC Group’s key investments.
By Kim Yon-se (
kys@heraldcorp.com)
